June 29 (Bloomberg) -- Japan Advisory Ltd., a hedge-fund
adviser, had its business registration revoked by the nation’s
authorities and the securities watchdog recommended the company
be fined for its involvement with insider trading of Nippon
Sheet Glass Co. shares.

The Securities and Exchange Surveillance Commission
recommended Tokyo-based Japan Advisory pay a penalty of 370,000
yen ($4,655) for breaching insider trading rules related to a
Nippon Sheet Glass share offering in 2010, according to a
statement by the watchdog. The registration was suspended for
breaching securities laws related to insider trading, the Kanto
Local Finance Bureau said today in a statement.

The case is among the latest to be brought to light by
Japanese regulators since March as they examine share
transactions before the announcement of public offerings.
Financial Services Minister Tadahiro Matsushita took office
earlier this month pledging to deepen the probe to restore
confidence in financial markets.

Japan Advisory, while advising two foreign-based hedge
funds, obtained information about Nippon Sheet Glass’s share
sale from employees at a brokerage in talks to underwrite the
offering, according to the SESC statement.

Under the punishment by the Kanto Local Finance Bureau,
Japan Advisory must halt its discretionary investment advisory
business, provide detailed explanations to clients on the
incident and report to the authority within a month on
improvements, according to the statement.

A person who answered the phone at Japan Advisory said she
wasn’t authorized to speak to the press and declined to comment,
adding that no one with authority was available for a comment.
Calls to the company outside business hours were not answered.